UNITED INDIA INSURANCE CO. LTD., SHIMLA versus TILAK SINGH AND ORS.

UNITED INDIA INSURANCE CO. LTD., SHIMLA versus TILAK SINGH AND ORS.

A statutory insurance policy under the Motor Vehicles Act, 1988 does not cover the risk of death or injury to a gratuitous passenger (such as a pillion rider on a scooter) unless there is a specific endorsement in the policy and an additional premium has been paid. Hence, the insurer owed no liability towards the...

Source-derived case information.

Parties
Appellant: United India Insurance Co. Ltd., Shimla; Respondent No. 1: Tilak Singh; Respondents 2 to 4: Legal heirs of Rajinder Singh (wife and minor daughters); Respondent No. 5: Bal Krishan; Respondents' Counsel: V.C. Mahajan, Sarwa Mitter, Mrs. S. Gupta, Amit Gupta for M/s. Mitter and Mitter Co., Mohan Pandey, Mrs. Rachna Gupta
Jurisdiction
India
Judgment Date
04 April 2006
Procedural Posture
Civil Appeal / Supreme Court Appeal Against High Court Judgment
Outcome
Appeal allowed
Legal Topics
Statutory Liability of Insurer, Gratuitous Passenger Coverage, Transfer of Insurance Policy, Third Party Claims
Motor Vehicles Insurance Law Statutory Liability of Insurer Gratuitous Passenger Coverage Transfer of Insurance Policy Third Party Claims

Source-derived case record

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Parties

United India Insurance Co. Ltd., Shimla

Appellant

Tilak Singh

Respondent No. 1

Legal heirs of Rajinder Singh (wife and minor daughters)

Respondents 2 to 4

Bal Krishan

Respondent No. 5

V.C. Mahajan, Sarwa Mitter, Mrs. S. Gupta, Amit Gupta for M/s. Mitter and Mitter Co., Mohan Pandey, Mrs. Rachna Gupta

Respondents' Counsel

Procedural Posture

Civil Appeal / Supreme Court Appeal Against High Court Judgment

Legal Issues

  1. 1 Whether a statutory insurance policy under the Motor Vehicles Act, 1988 covers the risk of death or injury to a gratuitous passenger (pillion rider) in a private vehicle.
  2. 2 Effect of failure to notify insurer about transfer of insurance policy on third party liability.

Ratio Decidendi

A statutory insurance policy under the Motor Vehicles Act, 1988 does not cover the risk of death or injury to a gratuitous passenger (such as a pillion rider on a scooter) unless there is a specific endorsement in the policy and an additional premium has been paid. Hence, the insurer owed no liability towards the deceased. The transferor's failure to notify the insurer of the transfer does not affect liability towards third parties but is not relevant where the deceased is not a third party.

Court Disposition

Appeal allowed

Orders

  • The impugned judgment of the High Court is set aside; the appellant-insurance company is not liable to pay the compensation awarded to the claimants.
  • No order as to costs.